The Dubai Financial Services Authority (DFSA) has now established a regulatory framework for investment tokens as part of its efforts to stimulate the digital financial and technological environment which will also meet the market players’ demands and requirements.
While the DFSA is an independent regulatory body in Dubai that is in charge of monitoring and regulating financial services Companies wanting to operate in the city. It also licenses and regulates its products and services.
According to a report by Emirati news agency WAM, the DFSA’s regulatory framework defines investment tokens as either “a Security Token or Derivative Token.”
The report notes that the creation of a new regulatory structure is the first step in the DFSA’s Digital Assets Regime, which reflects the suggestions made in Consultation Paper 138 published in March 2021. The consultation paper sought public input on the DFSA’s plans for regulating Security Tokens.
While the investment token framework is designed to safeguard investors and provide legal certainty for market operators.
